Financial Daily from THE HINDU group of publications
Tuesday, Jan 31, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jan 31, 2006 |
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Corporate
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Alliances & Joint Ventures BPL plans to shift colour TV plant in Slovenia to Poland K. Giriprakash
Bangalore , Jan. 30 BPL plans to shift its entire colour television factory in Slovenia to Poland to take advantage of lower cost of production there. Sources in the new joint venture told Business Line that the production in Slovenia had slowed down considerably because of the restructuring exercise being carried out in India. With Poland emerging as a low-cost production country, the company is now planning to shift the entire factory there, sources said. The capacity of the factory in Slovenia is around 200,000 and it makes low-end colour television sets. BPL had bought the factory in Slovenia to use it as a base to sell CTVs in Eastern Europe as part of its export strategy. German consumer electronics major, Loewe, with which BPL had earlier entered into an arrangement to sell the German company's high-end colour televisions in India, also wanted to source television sets from the plant in Slovenia. It had planned to make BPL its original equipment supplier for low-end TVs. It had planned to source sub-29 inch CTVs from BPL's plant in Slovenia. But with Loewe's arrangement with BPL no longer in place, the deal did not take off. Sanyo, an equal joint venture partner with BPL is also looking at using BPL's facilities to source components as well as complete television sets and later use it as a sourcing hub for consumer electronics products. Currently, Sanyo sources flat CTVs from BPL's plants in India. In India, Sanyo expects to have a 6 per cent market share in the CTV market while BPL expects to have a market share of 10 per cent in three years. In volume terms, the joint venture expects to have a 16 per cent share and in value terms, 20 per cent share.
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